Correlation Between Tecan Group and Siegfried Holding
Can any of the company-specific risk be diversified away by investing in both Tecan Group and Siegfried Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tecan Group and Siegfried Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecan Group AG and Siegfried Holding, you can compare the effects of market volatilities on Tecan Group and Siegfried Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tecan Group with a short position of Siegfried Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecan Group and Siegfried Holding.
Diversification Opportunities for Tecan Group and Siegfried Holding
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tecan and Siegfried is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tecan Group AG and Siegfried Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siegfried Holding and Tecan Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tecan Group AG are associated (or correlated) with Siegfried Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siegfried Holding has no effect on the direction of Tecan Group i.e., Tecan Group and Siegfried Holding go up and down completely randomly.
Pair Corralation between Tecan Group and Siegfried Holding
Assuming the 90 days trading horizon Tecan Group AG is expected to under-perform the Siegfried Holding. But the stock apears to be less risky and, when comparing its historical volatility, Tecan Group AG is 1.44 times less risky than Siegfried Holding. The stock trades about -0.24 of its potential returns per unit of risk. The Siegfried Holding is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 114,200 in Siegfried Holding on August 29, 2024 and sell it today you would lose (3,800) from holding Siegfried Holding or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tecan Group AG vs. Siegfried Holding
Performance |
| Timeline |
| Tecan Group AG |
| Siegfried Holding |
Tecan Group and Siegfried Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecan Group and Siegfried Holding
The main advantage of trading using opposite Tecan Group and Siegfried Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecan Group position performs unexpectedly, Siegfried Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Siegfried Holding will offset losses from the drop in Siegfried Holding's long position.| Tecan Group vs. Straumann Holding AG | Tecan Group vs. Sonova H Ag | Tecan Group vs. VAT Group AG | Tecan Group vs. Lonza Group AG |
| Siegfried Holding vs. Bachem Holding AG | Siegfried Holding vs. VAT Group AG | Siegfried Holding vs. Tecan Group AG | Siegfried Holding vs. Straumann Holding AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |